{
  "url": "https://openlegislation.uk/capital-gains-tax-parallel-pooling-regulations-1986/schedule/part-II",
  "json_url": "https://openlegislation.uk/capital-gains-tax-parallel-pooling-regulations-1986/schedule/part-II.json",
  "legislation": "uksi/1986/387",
  "legislation_title": "The Capital Gains Tax (Parallel Pooling) Regulations 1986",
  "legislation_url": "https://openlegislation.uk/capital-gains-tax-parallel-pooling-regulations-1986",
  "path": "schedule/part/II",
  "kind": "part",
  "number": "II",
  "heading": "QUALIFYING SECURITIES WHICH ARE NOT RELEVANT SECURITIES",
  "text": "STEP 1—Regulation 5(a)–(c)\nIndex the indexed pool as if an operative event had occurred immediately before 1st April 1985\nIndexed pool (see Part I.3, above)\n£31,652\n£31,652 × 116 − 114 114 = £31,652 × .018\n570\n£32,222\nTherefore—\nA = 9,000\nB = 30,000\nC = 32,222.\nSTEP 2—Regulation 5(d) and (e)\nNumber of securities not within 1983 holding (see Part I.4, above)\n3,000\nRelevant allowable expenditure\n£10,000\nTherefore—\nD = 9,000 + 3,000 = 12,000\nE = 30,000 + 10,000 = 40,000.\nSTEP 3—Regulation 5(f)\nF = 10,000.\nSTEP 4—Regulation 5(g) and (h)\nNumber of securities held on 31st March 1982\n1,000\nRights issue 1 for 1\n1,000\nG = 2,000\nRelevant allowable expenditure on securities\n= £6,000\nRelevant allowable expenditure on rights 1,000 @ £2 per share\n= £2,000\nH = £8,000.\nSTEP 5—Regulation 6\nJ = 2,000 × 40,000 40,000 + 10,000\n= 1,600\nK = £8,000 × 40,000 40,000 + 10,000\n= £6,400\nTherefore the 1982 holding comprises:\n1,600 shares—relevant allowable expenditure £6,400.\nNote: applying the above fraction to the separate components of H (step 4) £4,800 will qualify for indexation from March 1982 and £1,600 from September 1983 for the purposes of section 87 of, and paragraph 5 of Schedule 13 to, the Finance Act 1982.\nSTEP 6—Regulation 7\nNumber of securities in the 1983 holding forming part of new holding = 9,000 − 1,600\n= 7,400\nRelevant allowable expenditure on these securities = £30,000 − £6,400\n= £23,600\nAggregate of relevant allowable expenditure and indexation allowance for the purposes of paragraph 13(2), Schedule 19\n= ( 30,000 − 6,400 ) ⁢ ( 32,222 30,000 + 0.05 )\n= £26,528.\nSTEP 7—Regulation 8\nNumber of securities in new holding = 12,000 − 1,600\n= 10,400\nQualifying expenditure = £40,000 − £6,400\n= £33,600\nRelevant allowable expenditure in relation to securities not included in 1983 holding\n= £10,000\nIndexation allowance\n= £180\nIndexed pool in relation to the new holding\n= £26,528 + £10,000 + £180\n= £36,708.\nSUMMARY\n1982 holding: 1600 securities—relevant allowable expenditure £6,400 (of which £4,800 qualifies for indexation from March 1982 and £1,600 from September 1983).\nNew holding: 10,400 securities—qualifying expenditure £33,600 and indexed pool of expenditure £36,708.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1986/387/schedule/part/II",
    "retrieved_at": "2026-10-29T16:53:04.258587+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}